Researcher Points to Zcash Flaw, Targeting Monero for Future Audit

crypthub

about 3 hours ago

Zcash Vulnerability Discovery

Security researcher Taylor Hornby found the Orchard Pool counterfeiting flaw in Zcash in May 2022. This vulnerability allowed bad actors to potentially mint unlimited, undetectable counterfeit ZEC tokens. After discovering the flaw, he reported it to Zcash Open Development Lab (ZODL). ZODL coordinated an emergency network fix, which was implemented quickly.

Expanding Audits to Privacy Coins

Following the Zcash discovery, Hornby announced his intention to audit other privacy-focused cryptocurrencies. Specifically, he plans to examine Monero (XMR) and other similar projects. The Zcash flaw raised general doubts about the privacy features of several cryptocurrencies. Hornby also stated he disclosed the flaw rather than exploiting it.

Market Reaction and Future Mitigation

The initial discovery of the vulnerability caused significant negative market sentiment and price drops for ZEC. To restore confidence, stakeholders launched the Ironwood proposal. Ironwood aims to allow users to independently verify the total circulating supply of Zcash. This mechanism should confirm that only the correct amount of ZEC is circulating.